What is it that you are making of the market texture? We fell a lot less than our global counterparts and dips are getting bought into.
Our markets are sandwiched between the US market and a couple of key Asian peers, which is why you did not see any major trend picking up.
There was a heightened volatility in our market because of a lot of other factors. The dollar index was at a high of about 3-4 months. Volatility index, India VIX, managed to make a strong comeback from 11.5-12 to 13.5-14 levels at one point of time.
We could still be in a sideways range for some more time if the global market remains divergent in terms of cues like what we have seen in the last couple of weeks.
Give us some trading ideas for the week
I have three buy calls for this week. The first is a buy on Granules. I recommended this stock last week as well as I was expecting a breakout. We saw a very good breakout on Friday as the stock moved up around 6.5%. There should be more room on the upside for the stock in the near-term. The stock gave not just a price volume breakout but even a fresh breakout in terms of its 200-day moving average as well. Buy Granules with a target price of Rs 400. Stop loss can be kept at Rs 350.
The second would be a buy on DLF. This stock from the real estate pack has made an interesting comeback. It has formed a classic inverse head and shoulder pattern on the hourly timeframe charts and gave a breakout last week on Friday as well. So I would suggest a buy on DLF for a short-term target of Rs 320. A stop loss could be kept at Rs 290.
From the metals pack, I would recommend a buy on Vedanta. I expect the stock to form a bullish flag pattern on the daily charts. It could breakout significantly on the upside. The momentum is coming back. The level of Rs 275 has been acting as a good pivot support for Vedanta. A short-term breakout could be in the offing pretty soon. Buy with a target of Rs 300 and keep a stop loss at Rs 255.
